Sensex closes 216 points higher, Nifty at 8963; RIL up 4%

06 March 2017

3:30 Markets at close: After a subdued afternoon session, the market has closed higher.

The 30-share Sensex was up 215.74 points at 29048.19, while the Nifty was up 65.90 points at 8963.45. The market breadth remained narrow with 1,503 shares having advanced, 1,414 shares having declined, and 176 shares were unchanged.

2:47 pm IIP, WPI with new base year: The government may launch two macroeconomic indicators, the index of industrial production and the wholesale price index, with new base year 2011-12 by April-end to ensure compatibility with growth numbers.

The change in the baseline for IIP and WPI, currently at 2004-05, is expected to bring in more accuracy in mapping the level of economic activity and calculating other numbers like national accounts.

2:40 pm BEML stake sale: SBI Capital Market Services is set to get government's mandate to advise it on the strategic stake sale in BEML, an investment banker with one of the bidders told Moneycontrol.

The merchant banking arm of the country's largest bank beat Kotak Securities, Axis Capital, ICICI Securities and the big four consulting firms to emerge as the lowest bidder in the tender.

As transaction advisor, SBI Caps will manage the stake sale process and assist the department of investment and public asset management derive the fair reserve price to get optimum proceeds from the divestment.

2:19 pm Bosch lines up Rs 800-cr investment: Auto component major Bosch is looking to invest up to Rs 800 crore annually for the next few years as it aims to develop its Bengaluru-based headquarters into a modern technology park and move out the manufacturing operation from the facility to a new location.

The Group, which currently has a turnover of around Rs 18,000 crore and employs over 30,000 people across 10 legal entities, expects its growth in India to continue in a steady manner.

The market remained subdued after opening higher on Monday, led by gains on Reliance and Bharti Airtel.

The 30-share Sensex was up 159.65 points at 28992.10, while the Nifty was up 43.05 points or 0.48 percent at 8940.60. The market breadth was narrow as 1,456 shares advanced, 1,326 shares declined, while 169 shares remained unchanged.

Tata Consultancy Services (TCS), Sun Pharma and Grasim were the top losers on the indices.

Music Broadcast's initial public offering (IPO), has hit the Street on Monday. The Radio City operator's issue will close on March 8, 2017. The price band has been set between Rs 324 and Rs 333.

Reliance Industries shares touched a fresh nine-year high of Rs 1,307.05, up 3.86 percent intraday Monday as investors remained bullish on its telecom as well as energy prospects.

Shares of information technology (IT) companies were under pressure in early trade on Monday, following the developments on H1-B visa front in the US. Infosys and TCS were down over 1.25 percent intraday, while Wipro was lower by 0.62 percent. HCL Technologies, meanwhile, gained around 0.20 percent.

1:42 pm Europe opens: Markets in Europe opened lower as investors contemplated a rate rise by the US Federal Reserve and digested news that North Korea has fired multiple ballistic missiles off its east coast.

1:29 pm IPO: Music Broadcast, which owns FM radio stations Radio City and Radio Mantra, hit the Street with its Rs 488.5-crore public issue on Monday.

The issue comprises a fresh issue of up to Rs 400 crore and an offer for sale up to 26.58 lakh equity shares by selling shareholders. The initial public offer will close on March 8.

In total, the Radio City operator is going to raise Rs 486.13 to Rs 488.5 crore at price band of Rs 324 to Rs 333 per share.

The central bank already offers several tools to resolve large stressed assets such as Scheme for Sustainable Structuring of Stressed Assets (S4A) and Strategic Debt Restructuring (SDR). However, they have not achieved much success in the past.

Banks are now seeking a relaxation of stringent conditions attached to the current norms. Currently, not more than 10 percent of the debt can be converted into equity under the CDR scheme.

1:00 pm Market CheckEquity benchmarks as well as broader markets were off day's high in afternoon trade due to selling pressure in technology stocks. However, Reliance, banks and auto stocks continued to support the market.

The 30-share BSE Sensex was up 132.61 points at 28965.06 and the 50-share NSE Nifty gained 36.55 points at 8934.10. The gap between advances and declines narrowed as about 1437 shares gained against 1257 falling shares on the BSE.

Reliance Industries continued to hold its momentum, up 3.4 percent on value buying interest on hopes of strong telecom and energy prospects.

Technology stocks TCS, Infosys and Wipro remained under pressure after the US Citizenship and Immigration Services (USCIS), the agency that oversees lawful immigration to the US, has announced that it will temporarily suspend premium processing of all H1B petitions.

12:51 pm SEBI unhappy: The Securities and Exchange Board of India (SEBI) is reportedly not happy with the central bank's intervention in the HDFC Bank's February 17 trading case where foreign funds ended up trading in the stock even after the limit was breached.

According to a report in the Economic Times, the market regulator has penned a letter to the Reserve Bank stating that the latter's intervention without consulting with SEBI was not correct.

12:42 pm Limited Downside: Fund flows are currently dictating the direction of the market, Pramod Gubbi, Head of Equities at Ambit Capital told CNBC-TV18 in an interview Monday.

With no immediate reason for reversal of the 'sticky' domestic flows, the downside seems limited, he added.

However, he said he would prefer to 'buy on dips' as the market is expensive. On the impact of the UP elections' results on the market, he said an untoward outcome could hit sentiment for a couple of days but the buoyant fund flows will limit decline.

12:20 pm Expert speak: In an interview, the CNBC-TV18 Consulting Editor and veteran market commentator said participation from domestic investors had been waning off recently and they probably want the UP election out of the picture.

"If the BJP were to win or show signs of making it past the poll day after tomorrow, I think that could be an event which takes the market beyond 9,000 or even 9,100," he said.

"On the other hand if that event does not deliver for the market, after this phase of consolidation, the market could easily breakdown in the near term and dart towards 8,600-8,500 kind of levels," he added.

Apart from the election, the US Federal Reserve meet would be a crucial event in the coming days, he said.

Equity benchmarks continued to hold morning gains, with the Nifty hovering around 8950 level. Reliance contributed 21 points to the Nifty's gains, thereby holding the market with its rally.

The Sensex was up 169.04 points at 29001.49, while the Nifty was up 50.00 points at 8947.55. The market breadth was narrow after 1,430 shares advanced, 1,131 shares declined, while 156 shares remained unchanged.

Reliance, Power Grid and NTPC were the top gainers on the index, while pharma stocks, Grasim and Tech Mahindra were the top losers on the index.

Reliance Industries touched a fresh nine-year high of Rs 1,307.05, up 3.86 percent intraday Monday as investors remained bullish on its telecom as well as energy prospects. Analysts expect contribution from telecom and energy businesses to boost revenue growth in coming years.

L&T Technology Services gained over 2 percent intraday possibly on CLSA initiating coverage on the stock with a buy call. The brokerage house cited good client base as well as diversification of verticals, among others, as the reasons for the move.

Shares of Dredging Corporation zoomed over 16 percent on the back of possible stake sale reports. According to a media report, the government was looking to give up controlling stake of 51 percent and a Cabinet note on the proposal has been prepared.

Oil prices fell in Asian trade on Monday, wiping out some of the gains of the previous session amid worries lower growth targets in China could cut oil demand and ongoing concern over Russia's compliance with a global deal to cut oil output.

However, worries over escalating violence in the Middle East put a floor under prices. Brent crude futures dropped 20 cents, or 0.4 percent, to USD 55.70 a barrel as of 0459 GMT after settling 1.5 percent higher in the previous session. US West Texas Intermediate (WTI) crude futures fell 23 cents, or 0.4 percent, to USD 53.10 a barrel after closing the previous session up 1.4 percent.

The index includes the 50 largest companies after the constituents of S&P BSE SENSEX 50 index. Constituents of index are weighted by float adjusted market capitalisation. The index goes under periodic review semi-annually in June and December.

The Rail Vikas Nigam Limited on March 3 awarded to ARSS-SIPS (JV) the execution of work of track linking OHE, S&T and other allied works from Haridaspur to Kendrapara, including Kendrapara yard in connection with construction of New BG railway line from Haridaspur to Paradeep in Khurda Road Division of East Coast Railway in Odisha. The work order amounts to Rs 140.52 crore, the company told stock exchanges in a notification.

The work shall be completed within the stipulated period of 15 months along with six months defect liability period from the date of commencement, the exchanges were informed.

"The board of directors of MT Educare Ltd, at its meeting held on March 6, 2017, approved entering into confidentiality, exclusivity and standstill agreement to evaluate a potential strategic collaboration by way of a scheme of arrangement or any other suitable structure between MT Educare and Nspira Management Services Pvt," MT Educare said in a BSE filing.

"The agreement provides for a mutually agreed exclusivity period for due diligence and discussions between MT Educare and Nspira Management Services Private in relation to the proposed transaction." The company added that the current discussions are at a preliminary stage.

According to a media report, the government was looking to give up controlling stake of 51 percent in the firm. Furthermore, the report added that the government had prepared a Cabinet note on the proposal and is now being circulated among key ministries for comment.

11:00 am Market CheckThe market continued its run-up in morning, with the Sensex firmly holding psychological 29,000 level, aided largely by Reliance Industries, banks and auto stocks. The rally was mainly on account of further developments of GST in last weekend. The GST Council on Sunday approved two crucial legislations of central GST law and the integrated GST law.

The 30-share BSE Sensex was up 218.04 points at 29050.49 and the 50-share NSE Nifty gained 63.85 points at 8961.40. The Nifty Midcap and Smallcap indices were up around half a percent.

"If the BJP were to win or show signs of making it past the poll day after tomorrow, I think that could be an event which takes the market beyond 9,000 or even 9,100," Udayan Mukherjee, the CNBC-TV18 Consulting Editor and veteran market commentator said.

"On the other hand if that event does not deliver for the market, after this phase of consolidation, the market could easily breakdown in the near term and dart towards 8,600-8,500 kind of levels," he added.

The market breadth remained strong as about two shares advanced for every share declining on the BSE.

Reliance Industries shares touched fresh nine-year high of 1,307.05, up 3.86 percent intraday as investors remained bullish on its telecom as well as energy prospects, especially after recently the company indicated that revenue contribution from the sector will start from April 1, 2017.

10:40 am Market Expert: Jayant Manglik of Religare Securities says the results of the state elections hold the key for market which is scheduled on March 11. Before that, we have IIP data for the month of January on Friday i.e. March 10 after market hours.

He feels bulls still have upper hand and any decline to 8700-8800 zone would attract fresh buying interest. At the same time, traders should limit their positions only in the quality stocks and avoid temptation to fall into risky penny counters.

The Nifty gained 58.10 points at 8955.65. The market breadth was strong as about 1444 shares advanced against 817 declining shares on the BSE.

10:20 am Iron ore handling at ports surge: Iron ore shipments handled by the country's 12 major ports surged 169 percent to 38.61 million tonnes (MT) in the April-January period of this fiscal.

The government-owned ports had handled 14.37 MT of the key steel-making raw material in the corresponding period of the previous financial year.

The Indian Ports Association (IPA), which maintains cargo data handled by these 12 ports, in its recent report said that "percentage variation from previous year" in iron ore handling was as high as "168.59 percent" in the first ten months of the current fiscal.

Mining giant Vedanta had recently said the worst phase for the domestic iron ore industry is over and exuded confidence that its Goa arm is prepared to sustain the export momentum amid softening global prices and subdued demand.

A Fitch arm last month said the country's iron ore output is projected to grow to 185 MT in the next four years.

10:00 am Market CheckEquity benchmarks clocked key milestones in early trade on Monday, with the Sensex rebounding to its 29000-mark.

The 30-share Sensex was up 188.02 points at 29020.47 points, while the Nifty was up 53.60 points at 8951.15. The market breadth continued to remain healthy as 1,369 shares advanced, 634 shares declined, while 96 shares remained unchanged.

Reliance, NTPC and Eicher Motors were the top gainers on both the indices.

Meanwhile, shares of information technology (IT) companies were under pressure, following the developments on H1-B visa front in the US. It announced that from April 3 it would temporarily suspend the 'premium processing' of H-1B visas that allowed some companies to jump the queue, as part of overall efforts to clear the backlog.

Infosys and TCS were down over 1.25 percent intraday, while Wipro was lower by 0.62 percent. HCL Tech, meanwhile, gained around 0.20 percent.

Music Broadcast is making its initial public offering (IPO) debut on Monday. The Radio City operator's issue will close on March 8, 2017 and the price band has been set between Rs 324 and Rs 333.

9:59 am Ex-FM hits out at banks: The move by some public and private banks to levy charges after certain number of cash transactions at branches is the most retrograde step, former Union Finance Minister P Chidambaram said.

Banks including HDFC Bank, ICICI Bank and Axis Bank at present charge a minimum Rs 150 per transaction for cash deposits and withdrawals beyond four free transactions in a month. "Bank charges for depositing cash and withdrawing cash is most retrograde step," Chidambaram tweeted.

9:50 am Indices touch key milestones: The Sensex has continued its uptrend and regained its 29000-mark, while the broader index, Nifty, went past the 8950- mark in early trade on Monday. Experts feel the rally in the market is seen on the back of GST Council Meet's conclusions. Key exit poll results this week would also be on investors' radar.

9:40 am Buzzing stock: Shares of Cipla added more than 1 percent in early trade on Monday as it entered into agreements for divestment of its stake in animal health business.

It entered into agreements, through its wholly-owned subsidiary Inyanga Trading 386 Proprietary, with the group companies of Ascendis Health, South Africa for divesting its animal health business in South Africa and sub-Saharan Africa.

Under the terms of the deal, the company will divest its 100 percent stake in Cipla Agrimed Proprietary and Cipla Vet Proprietary, South Africa.

9:30 am Nifty at 11,500? The Nifty has traced out an impressive long-term uptrend and could even reach the 11,500 level, said Laurence Balanco, Global Technical Analyst at brokerage firm CLSA.

Speaking to CNBC-TV18, Balanco said this breakout would be driven by the Nifty Bank. He did not give a timeline for the record highs but said the bull run would continue at least till July and said that CLSA had set a target of 10,350 for the index once new highs are achieved.

The market on Monday opened in the green, with the Nifty reclaiming its 8900-mark on the back of positive cues from the GST Council meet.

The 30-share Sensex was up 94.50 points at 28926.95, while the Nifty was up 29.05 points at 8926.60. The market breadth remained healthy with 662 shares having advanced, 177 shares having declined. Meanwhile, 44 shares are unchanged.

Coal India and Bharti Airtel were the top gainers on both the indices, while IT stocks Infosys and TCS were under pressure and were the top losers.

The Goods and Services Tax (GST) Council headed by Finance Minister Arun Jaitley on Saturday cleared the crucial Central GST (CGST) and Integrated GST (IGST) bills, as the country moved a step closer towards implementing its biggest tax reform from July 1. The Council will now meet on March 16 to clear the state GST law and the Union Territory GST law.

The Indian rupee opened marginally higher at 66.77 per dollar on Monday versus Friday's close 66.81. Pramit Brahmbhatt of Veracity said, "The rupee will take cues from the equity market and trade with a positive bias for the day. We expect the USD-INR pair to trade in a range of 66.50-67/dollar for the day."

The Asian markets were under pressure following launch of ballistic missiles by North Korea in Japan's Exclusive Economic Zone. The Nikkei was lower by 100 points in early morning trade.